How to Create Synthetic Call Positions - Options University

Using Calls To Create Synthetic Leverage

A trading options strategy that is used to replicate a short stock position pay-off. It is carried out by buying a specific amount of "at the money" put (long put) and selling the same amount of "at the money" calls (short call) of the same underlying stock with the same expiration date.

Long Combination | Synthetic Long Stock - Options Playbook

Synthetic Dividend - Investopedia

The combination of call options and short stocks creates a synthetic put option, or a position with the exact characteristics of a put option. When the underlying stock drops, the call options eventually expires out of the money, losing all of its extrinsic value while the value of the short stock rises.

Buying Stock at 1/4th The Price? Our Synthetic Long Stock

Synthetic ETF - Investopedia

The synthetic long stock is an options strategy used to simulate the payoff of a long stock position. It is entered by buying at-the-money calls and selling an equal number of at-the-money puts of the same underlying stock and expiration date.

stock | Definition of stock in English by Oxford Dictionaries

Synthetic Stock Definition • The Strategic CFO

Synthetic Stock Definition. Synthetic stock is created when a holder of a call and put option simulates the stock when that holder buys and sells the options accordingly. Without participating in the market the holder can stand to make a gain. Then, they can invest in the stock as long as the expiration has not occurred for the options.

What is Synthetic Short Stock? definition and meaning

Synthetic Long Stock - The Options Industry Council (OIC)

synthetic stock. Definition. The artificial creation of an asset using combinations of other assets. For example, a long call option and a short put option (which amounts to a synthetic long stock), or a long put option and a short call option (a synthetic short stock).

Options strategy - Wikipedia

In finance, a synthetic position is a way to create the payoff of a financial instrument using other financial instruments. A synthetic position can be created by buying or selling the underlying financial instruments and/or derivatives.